Switzerland ends neutrality, joins the War on Deflation

I want you to imagine this nightmare scenario for a moment.
You walk into the grocery store and head down the aisles, family in tow, procuring your normal ration of foodstuffs for the fortnight.
Something doesn’t make sense.
Aisle after aisle you wander, the same sneaking suspicion tugging away at your consciousness, until the horrific realization finally cold-cocks you: prices are CHEAPER than they were a month ago.
You stand aghast at this sinister new reality in which prices dropped a big fat whopping 0.4%.
You can barely bring yourself to contemplate how the economy could possibly withstand such a gruesome price swing.
But there’s no time to waste.
Trying not to panic, you grab your children and race home, speeding through every red light on the way, and then immediately hunker down to wait for the coming zombie apocalypse.
Deflation has arrived. And as terrifying as it sounds to have to suffer from prices that have fallen ever-so-slightly, that’s exactly what the unfortunate people of Sweden had to deal with earlier this year.

This post was published at Sovereign Man on December 22, 2014.